1. Dawn Company manufactures and sells joint rod for cars. The company uses units (number of joint rod production) as the measure of activity. During October 2019, the company planned to produce 6,200 units, but its actual production was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for the month of October:

Data used in planning budgeting (for 6200 units):

	Fixed costs per month	Revenue per unit
Revenue		$38.80
		Variable costs per unit
Direct Labor		$6.20
Direct Material		$8.40
Manufacturing Overhead	$ 74,400	$2.20
Selling & Admin Costs	$ 45,600	$0.60
Total Expenses	$ 120,000	$17.40

Actual operation results for (for 6,160 unit)

Total Revenue	$ 239,008
Direct Labor	$ 38,192
Direct Material	$ 51,744
Manufacturing Overhead	$ 87,952
Selling & Admin Costs	$ 49,296
Total Expenses	$ 227,184

Based on the budgeted and actual results, what would be the:

a. Net Operating Profit for planning budget

b. Actual Net Operating Profit

Dawn Company manufactures and sells joint rod for cars. The company uses units (number of joint rod production) as the measure of activity. During October 2019, the company planned to produce 6,200 units, but its actual production was 6,160 units.

Based on the data provided in Question 4, and based on your findings, please find the actual to budget variances in the following table and indicate if the variances are Favorable (F) or Unfavorable (U). (Insert your budgeted amounts under budgeted column first; then, calculate variances and stated if the variance is F or U.)

	Actual $	Budgeted $	Variance $	F / U
Revenue	239,008
Direct Labor	38,192
Direct Material	51,744
Manufacturing Overhead	87,952
Selling & Admin Costs	49,296
Total Expenses	227,184
Net Operating Income